BYD has done it again. In October 2025 the Chinese car company surpassed Tesla’s global EV sales. Its aggressive and successful expansion into Europe in particular marks a significant moment in the global electric vehicle market.
Globally, BYD delivered 441,706 new energy vehicles (NEVs) in October, covering battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Although this was a 12.1% drop year-on-year, it resulted in BYD’s best monthly performance of the year and demonstrated robust demand despite market fluctuations in China. Notably, BYD’s EV sales have outpaced hybrids for seven consecutive months, with BEVs accounting for over half the sales, underscoring a clear shift towards full electrification in China.
The global trend further solidifies BYD’s position: by October 2025, the company had sold 1.61 million BEVs in the first nine months, compared to Tesla’s 1.22 million, marking a 37% increase against Tesla’s 6% decline. This marks the fourth consecutive quarter of BYD outselling Tesla in BEV sales worldwide, positioning BYD as the likely top-selling EV brand by year’s end.
According to data from the British car industry association SMMT, BYD registered 39,103 cars in October 2025, surpassing Tesla’s 35,455 for the first time in a major Western market.
BYD’s ascent was immediately reflected in its Hong Kong stock price, which rose 1.8% following the announcement. Investors see BYD not only as a rising star but also as a stable, scalable, and increasingly global powerhouse in electric mobility. The company’s success is underpinned by aggressive expansion strategies, cost-efficient production, and crucially, technological self-reliance. Unlike Tesla, which increasingly depends on external suppliers, BYD produces its own batteries, powertrains, and electronic components. Meanwhile, Tesla faces headwinds including declining Model Y sales in Europe and a damaged public image linked to controversies surrounding CEO Elon Musk.
BYD’s ambitions in Europe complement this global surge. In 2025, BYD launched its premium Denza brand in Europe, aiming to compete with established luxury automakers such as BMW and Mercedes. Denza, a previously joint venture with Mercedes now wholly owned by BYD, represents an advanced technology sub-brand set to introduce innovations ahead of BYD’s main line-up. Its European introduction beginning late 2025 with the electric Z9 GT sport wagon and subsequent models including hybrids and off-road vehicles reflects BYD’s commitment to establishing a high-end presence. Production for Denza will start in China, with European assembly planned in Hungary and Turkey, targeting a combined annual output of 500,000 vehicles.
The BYD ATTO 2
Complementing the luxury segment push, BYD also expanded its European lineup with the launch of the more affordable Atto 2 compact SUV in early 2025. Despite the European Union’s 45.3% tariff on Chinese-made EVs, BYD aims to strengthen its foothold in Europe and surpass its ambitious global sales target of 4 million vehicles for 2024. With innovative features like the Blade battery and advanced construction techniques, BYD blends affordability with technological sophistication for European consumers.
Financially, BYD’s rise has been remarkable. By early 2025, it had overtaken Tesla in revenue, generating approximately $107 billion compared to Tesla’s $97.7 billion, fuelled by sustained hybrid vehicle sales alongside EVs. The Shenzhen-based company not only matched Tesla’s EV sales but pulled ahead with its hybrid offerings, demonstrating versatility with a broader product mix. Their recent launch of competitively priced models such as the Qin L targets price-sensitive buyers in China amid economic slowdowns. Technological advancements, including a new five-minute battery charge capability outperforming Tesla’s 15-minute Supercharging, further boost BYD’s competitive edge.
While Tesla posted record deliveries in Q3, particularly benefiting from U.S. federal subsidies that ended in September, BYD’s multi-faceted approach, spanning luxury, affordable segments, hybrid and pure EV technologies, and self-reliant production, signals a comprehensive strategy driving its ascendancy. Tesla, meanwhile, faces challenges in image and market dynamics exacerbated by CEO Elon Musk’s controversial political affiliations and business choices, which have drawn criticism in key European markets.
Overall, BYD’s rapid growth, technological independence, and strategic expansion plans highlight a new era in the global EV industry, where Chinese innovation and scale are reshaping competitive balances. For Europe, the arrival of BYD’s Denza and continued introduction of competitively priced EVs signal a more diverse market landscape, intensifying competition and offering consumers more choices beyond traditional Western and Japanese brands.
